Fewer seek unemployment benefits

The number of people applying for U.S. unemployment benefits slipped 2,000 last week to a seasonally adjusted 339,000, the fifth straight decline that shows businesses see little need to cut jobs.

The Labor Department said Thursday that the less volatile four-week average fell 5,750 to 344,000. The average has dropped 11 percent in the past year.

Applications are a proxy for layoffs. They have fallen back near pre-recession levels this month after spiking in early October because of the partial government shutdown and processing backlogs in California. The steady declines are the latest sign that companies are firing fewer workers.

And last week's report on hiring and unemployment in October showed that businesses are also hiring workers at a steady pace.

Employers added 204,000 jobs in October, many more than expected and a sign that companies shrugged off the 16-day shutdown. Private businesses added 212,000 positions.

Companies have stepped up hiring as growth has picked up. Employers added an average of 202,000 jobs per month from August through October.

The economy expanded at a 2.8 percent annual rate in the July-September quarter, up from a 2.5 percent rate.